Year-end rate hike once again proves to be launchpad for gold price
– FOMC follows through on much anticipated rate-hike of 0.25%
– Spot gold responds by heading for biggest gain in three weeks, rising by over 1%
– Final meeting for Federal Reserve Chair Janet Yellen
– Yellen does not expect Trump’s tax-cut package to result in significant, strong growth for US economy
– No concern for bitcoin which ‘plays a very small role in the payment system’
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There were few surprises yesterday when the Federal Reserve decided to hike rates for the third time this year, by 0.25% to 1.5%. Gold responded with a climb of over 1%.
The statement accompanying the announcement was cautiously optimistic. Two FOMC members dissented whilst Yellen gave comments on Trump’s much lauded tax package and bitcoin.
This was Yellen’s last FOMC announcement as Federal Reserve Chair. As has become her style she was communicative of the Fed’s upcoming plans in terms of normalising monetary policy and the three rate hikes intended for 2018.
This post was published at Gold Core on 14, December.